Highland Medical Center goes on auction block for two bidders

Highland Medical Center may have a new owner, but who it is won't be settled until today.

Attorney Max Tarbox, who has represented the troubled health care provider since it fell into Chapter 11 bankruptcy in early June, said Northstar Hospital LLC and Lubbock Heritage Hospital Inc. each placed minimum bids Tuesday of $3 million, plus one dollar.

The two hospital groups will now take part in an auction today.

"We'll have an auction and find out just who the winning bidder is," Tarbox said.

Northstar Hospital LLC, which has some investment ties to Northstar Surgical Center in Lubbock, withdrew an earlier bid of $4.1 million in mid-August after it was unable to obtain an extension from the U.S. District Bankruptcy Court to further evaluate Highland's financial situation.

Northstar, a newly formed corporation, is led by its general partner, Symbion Inc.

The privately held Nashville, Tenn.-based company operates more than 70 short-stay ambulatory surgical centers and is owned by Crestview Partners, a $1.5 billion private equity firm.

Lubbock Heritage is a group that emerged in July, a month after Highland filed for bankruptcy.

Its physician/investor group is led by Dimmitt businessman Wayne Collins, who has been interested in acquiring the 123-bed hospital at 50th Street and University Avenue.

Highland fell into bankruptcy after revealing its ownership owed $10 million to more than 500 creditors, including $2.7 million to the Internal Revenue Service.

Highland, which in recent weeks has struggled to make its payroll, continues to operate. It employs 170 workers, 70 of them full time.

Tarbox said once the auction has been settled he will file a motion of sale with the bankruptcy court on Thursday.